MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Georgia is completing the procedures for accession to the Cape Town Convention on International Interests in Mobile Equipment with respect to Aircraft Objects. The relevant draft has already been submitted by the government to the Parliament. This issue was discussed at the sessions of the Parliament’s Sector Economy and Economic Policy and Foreign Relations Committees.

As Mariam Kvrivishvili, Deputy Minister of Economy and Sustainable Development, stated at the committee meeting, the main goal of the Convention is to reduce financial risks in the purchase, lease, or financing of aircraft and other aviation equipment, which will strengthen the local aviation sector.

“After the completion of accession to the Convention, it will be significantly easier for airlines registered in Georgia to purchase or lease aircraft and other aviation equipment. As a result, Georgian-registered airlines will have the opportunity to bring more modern aircraft to Georgia under better leasing conditions” – Mariam Kvrivishvili noted.

According to the Deputy Minister, joining the Convention will also improve Georgia’s positioning in the international aviation industry. The Convention harmonizes legal standards, simplifying transnational leasing and financial operations. Accordingly, Georgia will be presented as a reliable partner for the international aviation market, which, in turn, will contribute to attracting investments in this sector.

“Today, Georgia’s aviation statistics are at a record high. According to the latest data, more than 60 passenger airlines operate approximately 100 air routes at Georgian airports. This year, several leading European airlines entered the Georgian aviation market, including British Airways, easyJet, Air Serbia, and others. Accession to the Cape Town Convention will contribute to the development of local airlines, and we hope that they will be able to perform more direct flights, both passenger and cargo, to strategically important target countries for Georgia, which will further strengthen both the tourism and aviation sectors and contribute to the country’s economic development” – Mariam Kvrivishvili stated.

It is noteworthy that the Convention will also create an international legal framework in Georgia that will protect the rights of creditors (e.g., banks, leasing companies). In addition, it will be possible to register any international interest in the International Registry, which will ensure the transparency of the process. Currently, 86 states are parties to the Cape Town Convention.

After the committee hearings, the issue will be discussed by the Parliament of Georgia at a plenary session.